The global magnetic and optical media industry is dominated by Asian manufacturers. Media manufacturers are targeting Africa, the Middle East, South America, Eastern Europe, and emerging markets in Asia for growth.

The US magnetic and optical media manufacturing industry includes about 75 companies with combined annual revenue of about $400 million.

COMPETITIVE LANDSCAPE

Demand for magnetic and optical media is driven by ever-expanding data storage needs of businesses and consumers. However, demand for particular storage formats can decline rapidly as new technologies are developed. The profitability of individual companies depends on manufacturing efficiency, rapid technological advancements, effective marketing, and efficient distribution. Large companies enjoy economies of scale in manufacturing and distribution. Small companies can compete effectively by developing new products. The US industry is highly concentrated.